A hug, a tickle, a favorite meal – there are countless ways to express your love for your child. Yet perhaps one of the best ways to say “I love you” is to teach your child how to save for the future. But where do you begin?
For little ones…
Start with two piggybanks – one for “spending” money, one for savings. Have your little ones select the banks themselves, as well as decorate them. Show your kids how to sort and count coins. Get them to agree to save about one third of any money they receive as gifts. (What’s “one-third” to a tot? Count the coins with them and show them!)
When there’s a special occasion, have your little ones empty their piggy-bank booty and look for items within their price range. Give them the option to buy something or to continue saving their money – you just may be surprised at their response.
As they get older…
Give your children an allowance. Be sure they understand that all of their chores must be done each week in order to receive their allowance. Take them to the bank to open a savings account and, just as when they were younger, get them to agree to save about one third of the money they receive as gifts, allowance or earnings. To jump-start their savings, start them off with, a small amount of money.
Spend time teaching them how to track their money in a savings deposit passbook (or online), and explain how their money grows by earning interest.
For children of any age, the road to millions…
Match whatever amount they save – it’s a fast-track way to save for children of any age. Watch how fast they’ll catch on to saving! Of course, it’s up to you to set ground rules for their savings account – such as “saving for a rainy day” or “not to touch for ten years” or “saving for a particular item” – maybe a tech product or a new pair of shoes.
Several years ago, a money expert crunched the numbers and found that a 15-year-old could become a millionaire by retirement age simply by investing $2,000 every year for a period of seven years. That’s certainly an incentive for a “not to touch” status for the savings account.
Practice what you preach…
Keep a coin bank for yourself as well, since children often emulate their parents. Show your children that you’re also saving, and that loose change can add up to huge amounts. You can also start saving for your children’s future with a Grow-Up® Plan and a College Plan, both from Gerber Life Insurance Company:
- The Grow-Up Plan is a whole life insurance policy that protects your child while starting a nest egg for the future. The Plan accumulates cash value as long as premiums are paid. After 25 years, the policy’s cash value will be at least equal to or greater than 100% of premiums paid.
- The Gerber Life College Plan guarantees payment of the full benefit amount at maturity for college or any purpose, as long as premiums are paid.
With so many ways to express your love, a lesson in good financial habits is something that your children will cherish for years to come.
For additional information about Gerber Life Insurance Company products, please visit: gerberlife.com